Wolfe Research reiterated a Peerperform rating on Cisco Systems, citing demand pull-forward as customers order ahead of price increases and component constraints.
Cisco reported Q3 sales of $15.84 billion, up 12% YoY and above the Street estimate of $15.54 billion. EPS was $1.06 versus $1.04 expected. Product orders rose 35% YoY.
For the July quarter, Cisco guided sales of $16.8 billion. For fiscal 2027, core business is expected to grow mid-single digits, with total sales of nearly $68 billion including $6 billion in hyperscale AI revenue.
Webscale orders were $1.9 billion in the quarter. Cisco expects $9 billion in AI orders for fiscal 2026. Wolfe Research set fiscal 2028 sales and EPS at $72.2 billion and $5.00.
The stock trades at $101.87. According to Bond.az analysis, Cisco appears overvalued relative to its Fair Value.
